Indirect tax - Senegal

Value Added Tax (VAT) is the main type of indirect taxation in Senegal.

It is a tax on consumption which is applied during the production and distribution process to most goods and services. It is also applied to goods, and certain services, entering the country. Although VAT is ultimately borne by the consumer by being included in the price paid, the responsibility for charging, collecting and paying it to the tax authority at each stage of the process rests with the business making the supply ie the sale.

A business registered for the tax will charge VAT (output tax) on its sales, and incur VAT (input tax) on its purchases (including any VAT paid at importation). The difference between the output tax and the deductible input tax in each accounting period will be the amount of VAT payable by the business to the tax authority. Where the input tax exceeds the output tax, a credit of VAT is registered and refund can be claimed.

A transaction is within the scope of Senegal VAT if the following conditions are met:

• it is a supply of goods or services. Although the term ‘supply’ is not defined in the legislation, it has a broad interpretation
• it takes place in the Senegal(territory)
• it is made by a taxable person. For these purposes, a taxable person is a person or entity who is registered for VAT in the, or has a liability to become registered
• it is made in the course or furtherance of any business carried on by that person or entity
• service provided and taxable is used or exploited in Senegal
• service provided and taxable is done in order or in benefit of a Senegalese tax payer.

There are three rates of VAT that are applied to goods and services in Senegal; the standard rate, the reduced rate, and the zero rate. In addition, some goods and services are exempted from the tax.

Businesses that make exempt supplies are unable to claim all of the input tax that they incur, so the VAT paid to suppliers will be a ‘real’ cost.

Most goods imported into Senegal from outside are subject to VAT. The tax will have to be paid by the importer at the time of importation. VAT is collected by custom duty officers. Where the importation is for business purposes and the importer is registered for VAT, it may be possible to reclaim the tax (subject to certain rules).

VAT is collected at the same time than Customs duty. Once the duty (and VAT) has been paid by the importer, the goods are in ‘free circulation’ and they can then be released for use in the home market. Unlike other indirect taxes, such as VAT, once the duty has been paid it is not usually recoverable by the importer. It therefore represents a bottom-line cost to the importing business if it cannot be passed on in higher prices. It is therefore very important to ensure that the correct rate of duty is applied. VAT is charged on the value of the importation, including any custom duty.

Not applicable.

Not applicable.

Yes. VAT on digital services has a specific taxation since 01 july 2024.

The provision of digital services means the supply of goods and/or intangible services of any kind, carried out in an automated manner on a network computer and/or electronic technology.

VAT applies to the following digital services:

• provision of advertising services;
• digital intermediation service;
• downloading/streaming music, movies and online games;
• provision of so-called SaaS solutions [Software as a Service]
• cloud];
• data storage and processing;
• provision of databases;
• electronic data management;
• provision of articles, newspapers and information online;
• online learning, distance learning;
• hosting of websites, images and text;
• provision of information on travel, accommodation and transport;
• television broadcasting or provision of websites;
• hosting of data software;
• sale of software and software updates;
• remote software maintenance service;
• dissemination of images, texts and information;
• organization of political, cultural, artistic, sports, scientific and other broadcasts and events;
• provision of advertising platforms;
• provision of streaming platforms and subscription services;
• paging service in the booth;
• cloud storage service;
• provision of downloadable content (apps, books, movies);
• media subscription service, streaming, software programs;
• provision of audiovisual content;
• provider-to-recipient link service;
• performance of any other electronic service.

VAT is payable on digital services provided by non-resident online suppliers and on commissions received by foreign intermediaries on the sale of digital services on Senegalese territory.

Yes, they do. They must appoint a VAT representative to act on their behalf for VAT purposes when the person:

• is taxable or makes taxable supplies in Senegal
• is not established and does not have a "permanent establishment" in Senegal.

If the tax representative is not appointed, the Senegalese partner (client) is liable for VAT as he is considered the default representative.

However, non-resident online suppliers and foreign digital platform operators benefit from a simplified remote and electronic registration procedure.

The above-mentioned foreign companies must complete the online registration form made available to them by the Tax Administration following the link (https:/eservices.dgid.sn/fimfipnet). They are required to produce, as attachments:

• a copy of the Trade and Personal Property Credit Register (RCCM) or any document in lieu thereof for legal persons;
• a copy of the identification card or passport, in addition to the RCCM, for natural persons.

Following the completion of the form and the production of the documents in the dedicated platform, the foreign taxpayer receives an acknowledgement of receipt of the submission of his application for registration.

VAT returns must be filed each month and no later than the 15th of the following month.

For some taxpayers, returns and payments must be submitted electronically.
This is the case for VAT on digital services.

For VAT on digital services, returns must be filed by the 15th of each quarter. Returns must therefore be filed by the 20th of April, July, October and January.

An additional default penalty may be imposed by the tax authority if VAT returns are not submitted on time or if the corresponding tax is not paid by the due date.

In case of late submission or payment, the tax authority will send a notification to the taxpayer confirming that a lump sum percentage penalty may be imposed given the lack of compliance.

If there is no VAT return for the taxable period (month, quarterly), a flat-rate penalty is applicable in case of late declaration.

Not applicable.

Yes. A range of penalties can be imposed when companies do not comply with VAT rules.

Civil penalties and interest may be applied for errors and omissions made on tax returns, or when taxes are paid late. Penalties may also be assessed when the company has failed to keep adequate records, provided information (including additional reporting), or made repeated errors.

Criminal sanctions can also be applied to attempts to misappropriate VAT collected, the action is considered as an embezzlement of public funds.

For non-resident online suppliers and operators of foreign digital platforms , in addition to the above-mentioned tax sanctions, non-compliance with VAT rules on digital services may result in a suspension of access to digital platforms, sites, marketplaces or online marketplaces used to carry out transactions on Senegalese territory.

No.

VAT is not due when the goods are supplied abroad or when the service is used or the beneficiary is abroad. Secondly, only those registered in Senegal are allowed to deduct the exempt VAT relating to exports under article 380. Companies with no establishment in Senegal are not allowed to deduct VAT.

An invoice with VAT must show:

• a unique, sequential invoice number
• the name and address of the seller;
• the seller's VAT registration number
• the date of the invoice
• the time of supply (also known as the tax point) if different from the invoice date
• the name and address of the customer
• a description sufficient to identify the goods or services provided to the client
• the rate of any discount
• the total amount of VAT invoiced expressed in XOF.

For each type of item indicated on the invoice, the following must be indicated:

• the unit price or rate, excluding VAT
• quantity of goods or extent of services
• the VAT rate that applies to what is sold
• the total amount due, excluding VAT.

When a VAT invoice includes zero-rated or exempt goods or services, it must:

• clearly demonstrate that there is no VAT payable on these goods or services;
• Display the total of these values separately
• Present an official stamp of exemption (only in the case of a conventional exemption).

With regard to the invoicing of the provision of digital services:

• In the case of invoicing to local taxable persons, non-resident online suppliers and operators of foreign digital platforms will have to mention, in addition to their identity, address and NINEA issued by the Administration, the following information on the invoices issued by them:
  • the identity of the local taxable person, their NINEA and their address;
  • the nature of the service provided;
  • the total price of the service(s) concerned;
  • the amount of VAT charged at the standard rate;
  • the total amount of the VAT A payable.
• In the case of invoicing to private customers, non-resident online suppliers and foreign digital platform operators are allowed to issue simplified invoices in which the following elements are indicated, in addition to their identity, address and NINEA:
  • type of supply;
  • date of supply;
  • VAT due;
  • information used to locate the customer.

In Senegal, there is still no SAF-T requirement.

However, there is an obligation on non-resident online suppliers and operators of foreign digital platforms to keep a copy of the underlying invoices and/or accounting records identifying supplies to local taxpayers and indicating, where applicable, the nature of the supply.

identifying supplies to local taxable persons and indicating, where applicable, all information enabling local taxable persons to be identified for tax purposes, the nature of the services and the calculation of VAT collected on transactions carried out in Senegal. They are also required to keep, by any means at their disposal, the agreements and contracts entered into with taxable persons with a view to transmitting a copy, even by electronic means, in the event of a request from the tax authorities. In addition to this obligation, they also remain subject to the obligation to store, in electronic format, in their jurisdictions of residence and in accordance with the rules in force regarding the protection of privacy, all copies of invoices or receipts and/or underlying accounting documents for all taxable transactions carried out with their customers, whether taxable persons or local customers.

It should also be noted that under the Finance Act 2025, Senegal has opted for an electronic invoicing model for all commercial transactions. From now on, taxable persons will be required to issue an electronic invoice for the transactions they carry out. Electronic invoices are issued, transmitted and received in dematerialized form.

Finally, there is currently no obligation to report VAT in real time. However, returns are made electronically via the ETAX platform.